Real Estate Investing Basics

The 5 Game Changing Benefits Of Being A Realtor

Expertise: Personal Development, Business Management, Real Estate Marketing, Real Estate Deal Analysis & Advice, Real Estate Investing Basics
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In the Bigger Pockets forums this is often a question that comes up quite a bit.

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If I invest should I become licensed as a realtor?

Being both a realtor and investor are not mutually exclusive as some might lead you to believe.

The truth is having your license will give you more options and the ability to convert more of your leads into additional streams of income. Not only that, but being an active agent will allow you to expand a network that will help fill your pipeline with deals.

1. Extra Leads to Work

When your direct mail marketing machine starts turning out leads regularly there might be times where either by choice or necessity you will not be able to work a given lead. Perhaps the property is outside of your target market area, or the property simply does not conform to your needs.

Many of these sellers are not likely to be motivated to sell the property at a discount anyways. Therefore, you can take many of these leads and turn them into listings. A few listings here and there and you can pay for your marketing budget several times over.

Related: How Being a Real Estate Agent Gets Me More Deals

2. No Time To Work The Lead? Refer It Out To Your Network

Being a realtor gives you network. Whether your network is small (just colleagues at your brokerage) or larger from years in the business, you can likely find a buyer for the property out there somewhere.

Let another agent work the lead and get paid a referral fee. The goal is to throw away as fee of the leads you generate as possible without monetizing them in some form or fashion.

In addition, being networked with other realtors can sometimes net you deals. The more agents you know, the more that know you and what type of property you are looking for in your business. As a result leads can sometimes fall in your lap.

3. Realtor Commissions

Whether you are looking to sell your recent rehab or purchase a home for yourself being an agent will. For example I know a colleague who will use this reduction to sell his rehabs quicker.

Since he is acting as the listing agent, and saving the commission, he will offer extra incentive at 4% for the buyer's agent.

A 1% increase in commission may not sound like a ton, but over the length of his career he is certain it helps reduce days listed on the market.

Win-win, he saves money and offers a bit more to the buyer’s agent and in turn his properties sit on the market for fewer days.

4. MLS Access

As an agent you will gain direct access to the MLS. This will allow you to accurately pick comparables for any properties that you view.In addition, you can do your own searches directly on the MLS without having to depend on another agent to do it correctly.And as many have already found it can be a struggle to find a real estate agent that is familiar with the fundamentals of investing.

Related: Why The MLS Is A Goldmine For Real Estate Investors

5. Long Term Market Knowledge

Being a realtor and having access to the MLS is one thing, but being an active realtor within your market gives you insight to the latest trends and statistics local to your area. This information can prove to be invaluable in your business allowing you to morph and adapt to the current market since real estate is always in a constant state of flux.

Being a licensed agent brings additional options to the table.

There are a few caveats, but for the most part, it is to your advantage to become licensed.

If you have any questions, feel free to leave them below in the comments section and I will do my best to answer them.

Chris is an active real estate investor who buys and flips houses in the Dallas real estate market. He enjoys helping others along on their journey. I...
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    Replied over 6 years ago
    It seems like every other day I discover either her on the blog or in the forums another use for having a real estate license. I think this blog post pushed me over the edge, im going to sign up to start classes for monday. Great article, thanks for contributing
    Chris Feltus Residential Real Estate Agent from Fort Worth , Texas
    Replied over 6 years ago
    Tom, there are definitely some great advantages to being a Realtor. In truth, I only touched on a few of them in this blog post, there are many more. I highly becoming licensed even if you are just getting started in the world of investing. Please let me know if you have any questions and I would be glad to help.
    Replied over 6 years ago
    As a licensed Realtor and investor in MS and TN I can say that all of those things are definitely true, however, the one thing that could potentially be a negative is the agency relationships and fiduciary responsibilities that come with being a licensed agent as well as the code of ethics and bylaws that you must adhere to if you’re a Realtor. Of course ethics and honesty should take place regardless of licensing but there are a few instances where this can be to your detriment as a licensed professional when trying to flip a property quickly where one party may feel that they are being taken advantage of where large profits are made. I have seen agents have their license suspended for such things where I’m located. The main thing to remember is to disclose everything… if not if will come back to bite you. The real estate commission/licensing agency in each state is in place to protect the public, not the agent. And they will make an example out of an agent that is found taking advantage of a client/customer for a financial gain. The public comes first in most cases… Just something to think about before taking on more liability as an investor…
    Chris Feltus Residential Real Estate Agent from Fort Worth , Texas
    Replied over 6 years ago
    Yes you are correct Clint, I disclose numerous times that I am an agent and I am not representing them in anyway. Not only do I clearly state this verbally, but it is also under special provisions of the purchase and sales contract and my addendum’s. When you are flipping houses you just need to be clear you are the principal and are not acting as a fiduciary.
    Replied over 6 years ago
    All great points. In addition to these one nice advantage is being able to make your own appointments. If you want to move fast on a place there is no worry about your agent not being able to get out there until tomorrow or something. Even for less “hot” properties it is just nice to not have to coordinate with someone else. This and MLS access alone are worth the cost of a license even if you don’t monetize it at all. I recently finished my first referral which more than paid all my expenses for my license for the entire year. Working on setting up another one now. If I did nothing else with it other than do 1-2 of these a year it is still a money making tool for me.
    Joseph Puentes
    Replied 10 months ago
    Hi Shaun or Chris. . .I know this thread was from 5 years ago but I'm thinking of taking a RE Class in Durham, NC soon. But what I don't understand is how a person can work so independently. It seems that to be an entry level RE Broker you need to be under a Brokerage firm. Now don't these brokerages require you to participate in making them money? How can I gain independence from working for "them" so I can concentrate on using the RE license to work for "me" full time?